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because of that deposit tax component. now, the president is currently meeting with the leaders of the political parties. of course, what he's trying to do is to strong arm and to persuade them into voting for that deal because the other alternative, yes, that is bankruptcy for this country, which has only 1 million people and only makes up 0.2% of the entire eurozone. the debate and the vote on that bailout deal will be kicking off in around four hours from now at 4:00 p.m. local time. thou, a lot of uncertainty as to what the outcome of the vote will be, given that nobody has a clear majority. having said that, there is, of course, the chance that some of the lawmakers who have been wavering could have been appeased by the talk that some of the taxes for the smallest depositors could be lowered. now, "the wall street journal" has reported that those deposits between zero is and 100,000 euros could be taxed at only 3% as opposed to 6.75% previously. now, the middle bracket would be 100,000 to 500,000 euros. that could be taxed at 10% and then anything in excess of half a millio
meltdown. the parliament rejected an unprecedented tax on bank deposits. that was a key part of the eu bailout terms. the finance minister is in moscow today with mounting speculation that russia could step in with a safety plan to safeguard russian deposits in cyprus. steve sedgwick is in moscow where he caught up with the finance minister there an hour or so ago. steve? >> they turned to russians once again. there's a loan on the table from russians dating back from 2011 so it's not the exception to it the rule for the cypriots to turn to the russians. the russians themselves are indignant they weren't brought into talks. let's hear what he had to say earlier on about the state of the current talks. >> first meeting very constructive. very honest discussion. we underscored how difficult the situation is and we'll now continue our discussions to find a solution by which we hope we will get some support from russia. >> in terms of that support, are we talking about a change of terms for the current existing 2.5 billion euro loan and an extension of 5 billion loan in addition to that? >
going to go back to the original plan of taxing deposits. i am toll that's not going to be submitted to the troika. that may be the pipe dream of some in parliament. ladies and gentlemen, back to you. >> thanks, michelle. i was looking at the european bourses and i mean, if they can't sell off on this, and it's on -- you know, it's 0.2% of their economy and, you know, we're worried about whether there's any ripple all the way over to us. >> it may want be an instant market reaction, though. it may be something that's more of a concern about whether there would be other countries that step out of the eu. >> don't you think the markets could anticipate whether there would be further trouble or not? >> i don't know. i think this is -- >> we would be seeing it if it was really -- if they he can't sell off in europe, we shouldn't be looking at it at all for our markets here. >> no. michelle, what's that? >> i know you're over there, but you don't care. >> the one ripple effect i can think of is -- the one ripple effect i can think of is that if when they wind down this bank, there's some
,000 in the bank entirely to those under 100,000 and to keep the tax at 9.9% for those above 100,000 euros in their accounts. if it doesn't sound much different from the original plan, it's not. it basically exempts those with less than 20,000. on the back of that, we did see markets weak. elsewhere, there has been a weakening, but realively contained one. the ftse mib in italy is down 0.3%. the xetra dax is down by 0.5%. france is weaker. the ftse, as well, down about 0.25%. not too far off the levels we've seen this morning. german economic sentiment did come in roughly in line with expectations, so that helps to keep the bid in the euro, as well. here is the different between spain and italy. italy's ten-year selling off a bit. yield up to 4.66%. spain rallying. it did go to market with three nine-month yields this morning. still below 5%. i mentioned what was happening with the euro. let's take a look now as it continues to go through the different pieces of economic data we're getting this morning. it's still down about 0.11%. yesterday, it was actually stronger. so markets generally
tax on the large depositors which would lead to a tax of around 15% or 16%. or they can basically restructure their two bad banks. it would be very simple to do that. what would happen is the banks would write off all their equity, write-off their senior debt, write-off their dpovt subordinated debt. and then the large depositors would president owners of the new bank and convert. >> narrator: between 50% and 30% of their new depositors in the banks. >> could they say we don't want to do anything of those? >> certainly they can choose to do that. i don't think that's necessary. basically, if they do nothing, and the ecb carries through with its policy of cutting off liquidity on monday, they will have no choice but to restructure the two banks. >> are you surprised to see lines forming? >> no. depositors are frightened for their money. they've been told there's a high likelihood of the banks closing and staying closed for a period of time. in fact, the lines are not as long as i would have expected them. >> wow. interesting 30i7b9. i had a discussion with simon hobbs, my colleague
, which is to tax depositors below 100,000 euros. exactly one week later, that idea is completely dead. it's not going to happen. however, if you have uninsured deposits, over 100,000 euros in either one of the two banks that are going to be restructured, you are going to suffer severe losses, anywhere between 30% and 70% depending on which bank. equity goes to zero. junior bondholders to zee he row. senior bondholders for the most part to zero depends on the bank. what's the impact for investors? if you are an investor in european banks, you are on notice. every single bailout that has happened, your protection has diminished step by step by step. this is by design. it is europe's stated goal that by 2018 bailouts will not be a burden of the taxpayer. they will be born by the private sector and the investors in the questionable institutions. these banks will likely see interest rates rise as a result of this, maybe the countries that they're in. the question is, is this going to cause broader risk or force discipline and responsibility or both? >> additionally, european decision making on
Search Results 0 to 5 of about 6